14:55 | 15/07/2015 Economy
(VEN) - Speaking at the Investment Promotion for Agriculture Conference recently held in Hanoi, Deputy Prime Minister Hoang Trung Hai said that new agricultural investment promotion mechanisms in agriculture are necessary in the context of increasing international economic integration.
Minister of Agriculture and Rural Development Cao Duc Phat speaks at the Investment Promotion for Agriculture Conference
According to Minister of Agriculture and Rural Development Cao Duc Phat, private investment in agriculture and rural development has increased in recent years, contributing significantly to the domestic agricultural growth. Private investment in agriculture and rural development increased 1.9 percent over 2009 and 3,635 investors in agriculture and rural development were registered in 2013 compared with only 2,397 in 2007, with 89 percent of which being private investors who employed 265,000 workers.
Many of these investors have made successes in terms of advanced technological application, market expansion, and boosting local and regional economic development including Vinamilk, TH Truemilk, Minh Phu Co., Lam Son Sugar JSC and Dabaco Group. Currently, several large groups including Vingroup, Him Lam, Viettel and FLC have been interested in agriculture and rural development.
Investors in agriculture and rural development have accounted for a small percentage of all investors across the country. For example, they accounted for 1.01 percent last year and most were small investors with investment capital of below VND5 billion. Many of these investors are involved in mining while few are interested in high-tech agriculture. Links between scientists, businesses and farmers in production value chains have failed to be tightened and consolidated. Public-private partnership (PPP) models in agriculture and rural development are in pilot periods.
“Investors in agriculture and rural development often face risks in production in addition to limited land and tax incentives and unstable agricultural planning,” Phat said.
At the conference, several experts agreed that businesses should play an important role in sustainable agriculture and rural development and accompany farmers. Strengthened business-farmer links will help remove current obstacles in agriculture and rural development related to investment, techniques and technologies, added value, competitiveness and market expansion.
“The government will focus more investment on agricultural and rural infrastructure including hydraulic works and rural roads. PPP models are encouraged while deploying agricultural and rural infrastructure projects and some of these models have proved successful. Investors in agriculture and rural development should strive more creatively, have appropriate development plans for each agricultural and rural development period and take advantage of support from agricultural associations,” Phat said.
Attracting more investment in agriculture and rural development will help solve capital and hi-tech application issues from value-added production and processing.